Jun 21, 2023 05:05
Last week,
BlackRock, the world's largest asset manager, filed an application to register
a spot Bitcoin exchange-traded fund (ETF) in the United States, spurring two
more major issuers to pursue similar financial instruments. Yesterday (Tuesday),
both Invesco and WisdomTree announced their intention to create their own spot
Bitcoin ETFs.
Despite falling short of its previous attempts, BlackRock's recent move has boosted hopes that
US regulators might finally approve such an instrument this time around.
Invesco Applies for
Bitcoin ETF for the First Time since 2021
Invesco, an
asset management company with $1.4 trillion under its wings, is seeking
approval for a Bitcoin ETF for the first time since 2021. The company initially
attempted to establish a spot Bitcoin exchange-trade fund in 2021 in
collaboration with Galaxy Digital. Although unsuccessful in establishing a
market-based instrument at the time, Invesco is now attempting to introduce this
instrument again.
The
Securities and Exchange Commission (SEC) has repeatedly rejected proposals for
spot Bitcoin ETFs, albeit approving similar instruments based on cryptocurrency
futures. Currently, Invesco argues that the absence of a spot Bitcoin ETF is
driving retail investors towards more risky alternatives, such as the
now-defunct FTX trading platform or exchanges like Binance and Coinbase, which
are grappling with regulatory issues in the US.
WisdomTree Is the Next Company in Line
WisdomTree
is also in the queue and looking to launch an ETF called the WisdomTree Bitcoin
Trust. The ETF is planned to be listed under the symbol BTCW on the Cboe BZX
Exchange. Like Invesco, WisdomTree submitted a similar application in 2021,
which was ultimately rejected by the SEC in 2022, following months of delay in
issuing a final decision.
Following
BlackRock's lead, Bitwise Asset Management is applying for a spot Bitcoin
ETF, having submitted their application on June 16. Additionally, there are rumors circulating in the industry that Fidelity, another asset management firm, will
soon make a 'seismic move' in the digital asset market.
UPDATE: @DigitalAssets and @Fidelity is about to make a seismic move in crypto via both $BTC and $ETH. Sources expect Fidelity to either make a bid for @Grayscale or quickly launch their own spot #bitcoin ETF. One or both are coming, soon. **Blackrock and Fidelity will own…
— Andrew (@AP_Abacus)
June 18, 2023Industry
experts believe that Fidelity, like BlackRock, could seek to establish a
cryptocurrency ETF, aiming to capture some market share from Coinbase and
Binance, both of which are embroiled in legal disputes with the SEC.
Bitcoin Gains from Wall
Street Giants' Support
As a result
of the wave of applications for cryptocurrency ETFs, the price of Bitcoin has
been on a dynamic rise. On Wednesday, Bitcoin is testing at around $29,000, which is its
strongest price in over a month. During Tuesday's session, the value of the oldest
cryptocurrency increased 5.5%, marking its most robust single-day gain in
two weeks. Previously, such a dynamic move was seen in March 2023.
Wall Street
giants have just submitted applications to the SEC to establish new financial
instruments, and no one promises that the situation will differ from two years
ago. However, the current licensing pressure on the industry in the US might
prompt regulators to view regulated providers of financial instruments in a
more favorable light.
This article was written by Damian Chmiel at www.financemagnates.com.
World Crypto Global
